Transatlantic merger negotiations between UK firm Watson Farley & Williams and New York’s Chadbourne & Parke are underway, it was reported in the US press on Friday (15 June).
The high-level talks, which began formally in January, are being led by Watson Farley managing partner Michael Greville and Chadbourne’s managing partner, Charles O’Neill.
Greville pointed to Chadbourne’s experience in energy and project finance as a key driver behind the merger, commenting: “I can lay this firm alongside any big American firm and write a business plan that says both firms will get more business but this deal is much more than that. Chadbourne has a big renewable energy practice and we’re one of the few firms that has done a lot of deals in that sector.
“They have a very good business in Eastern Europe and… need a bigger London presence, especially in finance and corporate. We have had an office in New York for years but it is small and narrowly-based and we can’t really do securities. Having a New York securities practice would put our maritime finance practice on another level.”
If successful, the talks would bring to an end Watson Farley’s long-term quest for a merger partner, with the firm having come close to securing transatlantic tie-ups with US practices including Hunton & Williams and Squire Sanders & Dempsey in recent years.
In 2002, Legal Week revealed that the top 50 UK outfit was in talks with City rival Simmons & Simmons – although those discussions also proved ultimately unsuccessful. More recently, Watson Farley has focused on expanding its European network, including launching a new office in Germany in 2005.
Chadbourne's most notable move in the UK market to date came with the 2005 hire of a six-partner insurance team from Denton Wilde Sapte.
Last year turnover at Watson Farley increased by almost 10% from £49m to £53.5m, while profits per equity partner (PEP) climbed by 7% from £390,000 to £419,000.
Chadbourne, meanwhile, saw revenue improve by 11% to $254m (£129m) and PEP rise by 12% to $1.085m (£549,000).
See US report here.
Talkback: How does this measure against other transatlantic tie-ups? Market-shaping merger or just another takeover? Click here to have your say.
